The tie up will allow BSNL customers to pay their phone bills digitally by using MobiKwik’s platform.

MobiKwik in a statement said that BSNL caters to 38 million users and the partnership will help people to deal with currency shortage.

Praising PM Narendra Modi’s demonetisation move, Bipin Preet Singh, CEO, MobiKwik said, "This is the biggest surgical strike on the menace of cash ever heard of anywhere in the world. This is a historic policy change and will do down in democratic India's history as more impactful than the economic reforms of 1990s. This is a strong step taken by the Modi government and will benefit the growth of digital payments and digital banking in India. MobiKwik is excited to be a part of this historic moment."

MobiKwik had recently announced that its users will be able to transfer money instantly to any bank account at zero per cent fee.

Mobile payment transaction value in India is also likely to register over 150 per cent CAGR and cross Rs 2000 trillion by FY22 from just over Rs 8 trillion as of FY16, a study titled Indian M-wallet market said.

Several people ET spoke with about Ericsson’s India operations, including its current and former employees, said the Stockholm-based firm has reduced headcount in the last one year or so across functions, in line with its global restructuring.